Summary
Autodesk, Inc. reported its first-quarter fiscal year 2026 results, showing a 15% increase in total net revenue to $1.63 billion, driven primarily by subscription growth. While gross profit rose, income from operations saw a decrease due to a significant increase in operating expenses, notably a substantial rise in restructuring costs. The company generated strong operating cash flow of $564 million. Autodesk also highlighted a net revenue retention rate (NR3) slightly above 110% on a constant currency basis, indicating healthy customer retention and expansion. Despite revenue growth, net income and diluted EPS declined year-over-year, largely impacted by higher operating expenses, including substantial restructuring charges of $105 million recognized in the current quarter. The company's balance sheet remains solid with $2.30 billion in cash, cash equivalents, and marketable securities. Management pointed to continued investments in cloud, platform, and AI as strategic priorities, while also noting the transition to a new transaction model and annual billings, which impact billing and cash collection timing. Investors should monitor the impact of ongoing restructuring and investments in strategic growth areas.
Financial Highlights
50 data points| Revenue | $1.63B |
| Cost of Revenue | $160.00M |
| Gross Profit | $1.47B |
| R&D Expenses | $394.00M |
| Operating Expenses | $1.24B |
| Operating Income | $233.00M |
| Interest Expense | $18.00M |
| Net Income | $152.00M |
| EPS (Basic) | $0.71 |
| EPS (Diluted) | $0.70 |
| Shares Outstanding (Basic) | 214.00M |
| Shares Outstanding (Diluted) | 216.00M |
Key Highlights
- 1Total net revenue increased by 15% to $1.63 billion compared to the prior year period, primarily driven by subscription revenue growth.
- 2Operating income decreased by 22% to $233 million, largely due to a 26% increase in total operating expenses, significantly influenced by $105 million in restructuring, other exit costs, and facility reductions.
- 3Net income decreased by 40% to $152 million, and diluted EPS fell to $0.70 from $1.16 in the prior year period.
- 4Net revenue retention rate (NR3) was slightly above 110% on a constant currency basis, showing improved retention and expansion from existing customers compared to the prior year's 100%-110% range.
- 5Operating cash flow remained robust, increasing by 14% to $564 million.
- 6The company repurchased $353 million of its common stock during the quarter, signaling a return of capital to shareholders.
- 7Remaining Performance Obligations (RPO) increased by 3% to $7.16 billion, indicating a strong backlog of future recognized revenue.